Sole Source Justification Notice

GENERAL SERVICES ADMINISTRATION North Branch, Real Estate Acquisition Division Justification for Other than Full and Open Competition 0PA2069 U.S. Bankruptcy Court, U.S. Marshal Service U.S. Steel Tower, 600 Grant Street Pittsburgh, PA 1. Nature and/or description of the action being approved. This justification is to allow an existing 5-year renewal option to be exercised for 44,982 ABOA square feet of office space. The current lease number is LPA70046. The space consists of office with related space and courtrooms. The current location is the U.S. Steel Tower, 600 Grant Street, Pittsburgh, PA. The current lease expires on November 2, 2012 and notice must be given on the renewal option on or before May 31, 2012. The space consists of courtrooms, judge's chambers, U.S. Marshal Service security areas and general office support space including file storage and record keeping. 2. Description of the supplies or services required to meet the agency's needs (including estimated value). The agencies under this lease require a unique build-out which requires them to remain at this location, based on their requirements. The courtrooms, chambers, and related space are not typical improvements of normal office space and therefore these improvements would have to be reconstructed as an additional cost to the government. Exercising our right to renew the lease at this location will allow the government to forego the extensive build-out costs associated with rebuilding all of the tenant improvements required by the agencies. The renewal option provides for the termination of a portion of space on the 53rd floor. Otherwise the renewal term is for a period of five years, firm. The original lease term was from November 3, 1997 through November 2, 2012 with no previous sole source actions. The estimated value of this action is as follows: Firm Term: $27.38* rate/RSF x 51,729 RSF = $1,416,799.44 (Annual Rent) x 5 years = $7,083,997.20 *-represents a rounded rate and includes additional components of rent, <> 3. Identification of the statutory authority 41 U.S.C. 253 (c) (1) and FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements. 4. Demonstration that the proposed contractor's unique qualifications or nature of the acquisition requires use of the authority cited. In accordance with 41 U.S.C. 253 (c) (1), the agency's minimum needs can only be satisfied by unique supplies or services available from only one responsible source and no other type of property or services will satisfy the needs of the agency. At the current location there are three Courtrooms, each with related space for judges and support area for associated tenants (i.e., U.S. Marshal Service). Within the courtrooms and associated judges' Please reference the attached Cost-Benefit analysis which outlines the estimated cost savings by remaining at the current location. This analysis attempts to account for the extensive build-out that is required by the agencies including courtrooms which have extensive IT requirements, <>, enhanced lobby security and private judge's chambers. The analysis shows a clear savings to the government by remaining at the current location and duplicating any finishes above the TI allowance would only further support this action. Therefore, it is in the best interest of the government to remain in the current location. 5. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable In order to maximize competition <> was searched for available properties and an advertisement was placed seeking other available options. In addition, existing GSA leases in and around the Pittsburgh CBD were used for comparison purposes. Please reference the attached market research memorandum, which details the search of <> and a review of current locations through REXUS. An advertisement was placed on Fedbizopps on April 20, 2012 for 15 calendar days. The details of the response(s) are explained further within this document under section 9. 6. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. The offered renewal rental rate of $27.38/RSF at this location is within the market range of <>/RSF/Fully Serviced and below the average rental rate of GSA leases in the CBD of Pittsburgh. . When accounting for the parking, antenna, and quality of the location and space, the offered renewal rental rate is in-line with the market. The anticipated cost of exercising this lease action is fair and reasonable. Please see attached cost-benefit analysis for an outline of this anticipated cost. 7. Description of the market research conducted See attached Market Research Memorandum and Cost Benefit Analysis. 8. Other facts supporting the use of other than full and open competition All agencies within this current lease have stated that the current location is satisfactory and that they wish to remain. The GSA field office has indicated that this lessor is responsive to requests and has an overall satisfactory history of past performance. Remaining in the current location will allow the agency to continue their mission without any disruption. 9. List of any sources that expressed in writing an interest in the acquisition <> 10. Statement of actions the agency may take to remove or overcome any barriers to competition At the end of the proposed lease term, a fully competitive leasing action, if appropriate, will be initiated.